Question

Depreciation of currency has same effect on exports as devaluation of currency. True or false give valid reason

Answer 1

Depreciation of currency has the same effect on exports as the Devaluation of currency. - Yes, it is true.

Explanation:

• Depreciation occurs because of the demand and supply of goods and services.

• Devaluation happens when the government intentionally reduces the currency value on the exchange rate policy.

• Both Devaluation and Depreciation of the currency will increase the country's exports, as the goods become cheaper for exporting companies, it increases the country's economic development.